- 1 decade agoFavorite Answer
It is a contract between a hotel and an outside entity that is running business inside the hotel. For instance, a restaurant owned by T.G.I. Friday operating business inside of JW Marriot Hotel.
In general, hotel does not pose control over the operation of the leaser. Hotel will only collect rent and possibly a certain percentage of the profit made by the leaser depends on the terms and conditions of the agreement. However, hotel should always put the requirement in the lease that the leaser should follow the protocols of hotel operation.
In conclusion, it is a contract between landlords and tenants. It can be between a hotel and a landlord, or a hotel and its tenant.
P/S: I hope this answers your question.
- 1 decade ago